5 10 15 20 25 1,1 1 2 .") "COPY" stamp"COPY" stamp "COPY" stamp "COPY" stamp"COPY" stamp 4 6 7 8 9 11 12 13 14 16 .17 18 19 21 22 23 24 26 27 28 CONFORMED COpy'OlpGINALFlLEDSu~nor Court ofCalifornia ounty ofLos Angeles AUG 242009 lo1mA.u"",om.cer/ClerkBy_ i\PPER, -. DePUt) SUPERIOR COURT OF THE STATE OF CALIFORNIA FOR THE COUNTY OF LOS ANGELES THE PEOPLE OF THE STATE OF CALIFORNIA, Plaintiff, v. CASHCALL, INC., A CALIFORNIA CORPORATION Defendant Be 42 01 15 pmoffJ!!'f)l FINAL JUDGMENT AND PERMANENT INJUNCTION Plaintiff, the People ofthe State of California, appearing through its attorney, Edmund G. Brown JI., Attorney General ofthe State of California, by Benjamin G. Diehl, Deputy Attorney .General and Defendant CashCall, Inc., a California corporation, appearing through its attorney Dan Baren, Esq., have consented to the entry of this Final Judgment and Permanent Injunction (Judgment). This Judgment is entered without taking any proof and without trial or adjudication of any issue of law or fact. This Judgment does not constitute evidence of or an admission by the Defendant regarding any issue oflaw or fact alleged in the Complaint. This Judgment and the Stipulation for Entry of Final Judgment constitute the complete, final, and exclusive agreement COMPLAINT Document hosted at http://www.jdsupra.com/post/documentViewer.aspx?fid=4a8c6131-d1ad-404b-8f89-869c0b1cff0d5 10 15 20 251 2 3 4 6 7 8 9 11 12 13 14. 16 17 18 19 21 22 23 24 26 27 28 :. between the parties and supersede any pdor written or oral agreements between the parties, except as specifically provided below. Therefore, the parties, having waived their rights of appeal and having approved this Final Judgment as to form and content: IT IS HEREBY ORDERED THAT: 1. This Court has jurisdiction over the parties to and the subject matter of this action, and venue is proper in this Court. 2. As used in this Judgment, the term "Consumer Loan" includes any loan made to an individual whether unsecured or secured by personal property. The term "Borrower" refers to a person who is obligated or allegedly obligated to repay a Consumer Loan. The term "Lender" includes CashCall and any other person or entity bound by the injunctive provisions ofthis Judgment who is engaged in the business of making Consumer Loans. 3. The injunctive provisions of this Judgment shall apply to CashCall, as well as its agents, employees, officers, directors, owners, representatives, independent contractors, partners, successors, assigns, and all those acting in concert or in participation with CashCall, who have actual or constructive notice of its terms. The injunctive provisions of this Judgment also shall apply to any officer, director, or owner of CashCall who signs the Stipulation for-Entry afFinal Judgment and Permanent Injunction, r~gardless of that person's place of employment. 4. Pursuant to California Business and Professions Code sections 17203 and 17535, the entities and individuals described in paragraph 3 of this Judgment are permanently enjoined and restrained from: A. Advertising interest rates or annual percentage rates on Consumer Loans that are not made available to the general public, including, but not limited to, rates on Consumer Loans made only to military personnel,. without clearly and conspicuously stating that those rates are available only to some subsection of the general population and without identifying those persons eligible to receive those rates. 2 COMPLAINT Document hosted at http://www.jdsupra.com/post/documentViewer.aspx?fid=4a8c6131-d1ad-404b-8f89-869c0b1cff0d123456789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 B. Making any untrue Of misleading statement, whether written or oral, about the interest rate or annual percentage rate to be charged on a Consumer Loan. C. Failing to disclose the annual percentage rate and the manner in which interest accrues on a Consumer Loan, in terms that can be readily understood by the Borrower, on any occasion during which a representative of the Lender speaks to a prospective Borrower during the loan application process and during any "Welcome Call," loan verification call or other call during which the terms ofthe Consumer Loan are reviewed with the Borrower, before or after the Consumer Loan funds. D. Failing to attempt to make a loan verification call to the Borrower within 72 hours after the Consumer Loan funds, during which a representative of the Lender will disclose the annual percentage rate and the manner in which interest accrues on the Consumer Loan . E. Failing to send a Borrower, by U.S. mail, documents about his or her Consumer Loan(s) after the Borrower makes a request to the Lender. that those documents besent by U.S. mail. F. Failing to provide a a Borrower with 48 hours advance written notice before any fee, charge or expense incidental to the principal obligation on the Consumer Loan is withdrawn from the Borrower's bank account,. G. Attemptingto collect an ACH (Automated Clearing House) payment on a Consumer LOal) from a Borrower's bank account more than twice in any 30day period after the account has been shown to have insufficient funds to cover the payment. H. Giving a Borrower a payoff quote on a Consumer Loan without informing the Borrower (1) the total amount required to payoffthe Consumer Loan as ofthe date ofthe request, or as of a date specified by the borrower; (2) whether it is anticipated a portion ofthat total amount will be paid by a pending 3 COMPLAINT Document hosted at http://www.jdsupra.com/post/documentViewer.aspx?fid=4a8c6131-d1ad-404b-8f89-869c0b1cff0d5 10 15 20 251 2 3 4 6 7 8 9 11 i2 13 14 16 17 18 19 21 22 23 24 26 27 28 ACH payment which will be debited from the Borrower's bank account; and (3) the date and amount ofthat ACH payment, if one is pending. 1. Failing to abide by each agreement-made with any Borrower concerning the repayment of a Consumer Loan, including, but not limited to, deferments of payment, payment due date changes, and cancellations ofACH payments. 1. Offering a Borrower a deferment ofpayment on a Consumer Loan without giving the Borrower complete and clear instructions about how to accept the deferment and without informing the Borrower about the effect the deferment with have on the Consumer Loan. K. Failing to comply with all provisions ofthe Rosenthal Fair Debt Collection Practices Act, as currently codified in California Civil Code sections 1788 and following. 1. Collecting or attempting to collect on a Consumer Loan by engaging in any conduct the natural consequence of which is to harass, oppress, or abuse any . person in connection with the collection of a Consumer Loan, including, but not limited to, the conduct specified in paragraphs M through Qbelow. M. Collecting or attempting to collect on a ConsUmer Loan by means of the use, or threat ofuse, ofphysical force or violence or any criminal means to ( cause harm to the persori, or the reputation, or the property of any person. N. Collecting or attempting to collect on a Consumer Loan by making a threat to any person that: (i) The failUre to pay the Consumer Loan will result in an accusation that the Borrower has committed a crime; (ii) The failure to pay the Consumer Loan will result in a referral to a law enforcement agency, including, but notlimited to, the police, child protective services, or any immigration agency; (iii) Nonpayment ofthe Consumer Loan may result in the arrest ofthe Borrower; or 4 COMPLAINT Document hosted at http://www.jdsupra.com/post/documentViewer.aspx?fid=4a8c6131-d1ad-404b-8f89-869c0b1cff0d123456789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (iv) Nonpayment ofthe Consumer Loan may result in the seizure, garnishment,.attachment or sale of any property or the garnishment or attachment ofthe wages ofthe Borrower, unless the Lender has first obtained a judgment against the Borrower and has determined that such action is appropriate and permitted by law. O. Collecting or attempting to collect on a Consumer Loan by using obscene or profane language when communicating with any person. P. Collecting or attempting to collect on a Consumer Loan by making derogatory comments about the Borrower's character based on the Borrower's delinquent account status on the Consumer Loan. Q. Collecting or attempting to collect on a Consumer Loan by means of any ofthe following practices: (i) Communicating, by telephone, facsimile, or in person, with the Borrower with such frequency as to be unreasonable and to constitute harassment to the Borrower under the circumstances. For purposes ofthis Judgment, harassment includes, but is not limited to, making more than one contact With a Borrower by telephone per day concerning the Borrower's delinquent account status, and/or making more than one contact with a Borrower by telephone to remind a Borrower about an upcoming payment due date or promise to pay, unless the Borrower has consented to additional contact. A message left for a Borrower on voice mail or on an answering machine constitutes a "contact" for purposes ofthis provision; (ii) Communicating with a Borrower at any unusual time or place or at a time or place known or which should be known to be inconvenient to the Borrower, including, but not limited to, any time before 8:00 a.m. or after 9:00 p.m., local time at the Borrower's location; (iii) Communicating with a Borrowei' at the Borrower's place of employment ifthe Lender knows or has reason to know that the 5 COMPLAINT Document hosted at http://www.jdsupra.com/post/documentViewer.aspx?fid=4a8c6131-d1ad-404b-8f89-869c0b1cff0d123456789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Borrower's employer prohibits the Borrower from receiving such communication; (iv) Communicating with a Borrower's employer regarding the Consumer Loan unless the communication is necessary to the collection of the Consumer Loan, or unless the Borrower or his or her attorney has consented in writing to the communication. A communication is necessary to the collection of the Consumer Loan only if it is made for the purposes of verifying the Borrower's employment, locating the Borrower, or effecting post-judgment garnishment of the Borrower's wages. Any such communication shall be in writing unless the written communication receives no response within 15 days and shall be made only as many times as is necessary for the collection of the Consumer Loan, except that one communication solely for purposes of verifying the Borrower's employment may be oral without prior written contact; (v) Communicating with a Borrower's employer, co-worker, family member, friend, acquaintance, neighbor, or reference regarding the Consumer Loan using language or engaging in conduct that would be improper under the terms ofthis Judgment or any applicable law, ifthe communication were made to the Borrower; (vi) Communicating information regarding the Consumer Loan to any member of the Borrower's family --other than the Borrower's spouse, or the parents or guardians of the Borrower who is either a minor or who resides in the same household with the parent or guardian --or any friend, acquaintance, co-worker, or neighbor of the Borrower, before obtaining a judgment against the Borrower except when the purpose ofthe communication is to locate the Borrower or when the Borrower or his or her attorney has consented in writing to the communication; 6 COMPLAINT Document hosted at http://www.jdsupra.com/post/documentViewer.aspx?fid=4a8c6131-d1ad-404b-8f89-869c0b1cff0d123456789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COMPLAINT 7 Document hosted at http://www.jdsupra.com/post/documentViewer.aspx?fid=4a8c6131-d1ad-404b-8f89-869c0b1cff0d123456789 19 20 21 22 23 24 25 26 27 28 10 11 12 13 14 15 16 17 18 . (iii) A Consumer Loan has been, is about to be, or will be sold, assigned, or referred to an outside debt collector for collection; (iv) The Borrower's account has been, is about to be, or will be referred to outside legal counsel; or (v) The failure to pay the Consumer Loan has resulted or will result in a referral to a law enforcement agency, including, but not limited to, the police, child protective services, or any immigration agency. T. Collecting or attempting to collect on a Consumer Loan by using a threat to take any action that cannot legally be taken or that is not intended to be taken. U. Collecting or attempting to collect on a Consumer Loan by initiating communications regarding the Consumer Loan, other than written statements of account, with the Borrower, when the Lender has been previously notified in writing by the Borrower's attorney that the Borrower is represented by an attorney .with respect to the Consumer Loan and the notice includes the attorney's name and address and.a request by the attorney that all communications regarding the Consumer Loan be addressed to the attorney, unless the attorney fails to answer correspondence, return telephone calls, or discuss the obligation in question within 10 days of any communication to the attorney by the Lender. V. Failing to document a Borrower's request that the Lender cease or limit telephone contact with the Borrower regarding a Consumer Loan. W. Failing to notify a Borrower who makes an oral request that the Lender cease or limit telephone contact with the Borrower regarding a Consumer Loan that the Borrower must put the request in writing and send the ~itten request to the Lender within five business days of the oral request or the ·Lender may resume telephone contact with the Borrower. 8 COMPLAINT Document hosted at http://www.jdsupra.com/post/documentViewer.aspx?fid=4a8c6131-d1ad-404b-8f89-869c0b1cff0d5 10 15 20 251 2 3 4 6 7 8 9 11 12 13 14 16 .17 18 19 21 22 23 24 26 27 28 X. Collecting or attempting to collect on a Consumer Loan by continuing to' contact a Borrower by telephone after the Borrower has made a written request that all contact by telephone cease. Y. Collecting or attempting to collect on a Consumer Loan by contacting a Borrower by telephone at a particular time or place after the Borrower has made a written request that all telephone contact at that particular time or place cease. Z. Failing to document in a Borrower's account history the date, time, telephone number, and name (to the extent the name is disclosed or otherwise lmown by the Lender) of each person contacted or,attempted to be contacted in an effort to collect on a Consumer Loan. AA. Failing to prohibit the Lender's employees from using any telephones that are not monitored by the Lender to make any call to a prospective or current Borrower regarding a Consumer Loan. BB. Failing to refrain from using field chasers to do anything other than to ' attempt to locate a Borrower or to provide'tthe Borrower with correspondence from the Lender regarding a Consumer Loan. The term "field chasers, as used in this provision and in paragraph CC below, means any and all persons hired by the Lender to go out into the field to locate and to make in-person contact with Borrowers. CC. Failing to instruct field chasers that they may not question Borrowers about their delinquent payment status or attempt to collect money from Borrowers on a Consumer Loan. 5. For purposes of ensuring compliance with the injunctive provisions of this Judgment, CashCall shall do the following while engaging in the business of making Consumer Loans: A. Within 10 business days after entry ofthis Judgment, CashCall shall provide a copy ofthis Judgment to each of its current officers ,and directors, and each of its current employees who have any responsibility related to CashCall's debt collection or lending practices: CashCall shall provide a copy ofthis 9 COMPLAINT Document hosted at http://www.jdsupra.com/post/documentViewer.aspx?fid=4a8c6131-d1ad-404b-8f89-869c0b1cff0d1 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 23456789 10 11 12 13 . ' Judgment to any new officers and directors, and employees who have any responsibility related to CashCall's debt collection or lending practices prior to their commencement of such duties. B. Within 30 days after entry of this Judgment (or within 30 days after a new employee is hired), and not fewer than four times per year thereafter, CashCall shall provide training regarding the applicable injunctive provisions of this Judgment to each of its employees who have any responsibility related to its debt collection or lending practices. C. CashCall shall obtain from each person described in paragraph 5.A above, a signed and notarized Acknowledgment that states that the person has received and read a copy of this Judgment, and that CashCall has explained to this person the meaning of each injunctive provision that is relevant to this person's duties. The Acknowledgment shall legibly state the name, position or job title, address and telephone number of the officer, director or employee signing the Acknowledgment. The signed and notarized Acknowledgment shall be returned to CashCall within three days of receipt by the officer, director or employee. D. CashCall shall maintain the original Acknowledgments and, upon 48 hours written notice, shall make the Acknowledgments available for inspection and copying by any duly authorized representative of the California Attorney General. E. CashCall shall terminate the employment of any officer, director or employee who violates any of the injunctive provisions of this Judgment or who fails to return the signed and notarized Acknowledgment to CashCall within three days of receipt of the Aclmowledgment. F. CashCall shall maintain a log of consumer complaints it receives by telephone that includes the date and time of the call, the name, address and telephone number of the complainant and a description of the complaint, and all 10 COMPLAINT Document hosted at http://www.jdsupra.com/post/documentViewer.aspx?fid=4a8c6131-d1ad-404b-8f89-869c0b1cff0d5 10 15 20 251 2 ..., .J 4 6 7· 8 9 11 12 13 14 16 17 18 19 21 22 23 24 26 27 28 .. written or electronically transmitted consumer complaints, that shall be made available to the California Attorney General pursuant to paragraph 10 below. G. CashCall shall record all telephone calls made to or received ,from all prospective and current Borro:wers in a manner that complies with all applicable state and federal laws concerning such recordings. 6. CashCall shall pay to Plaintiff, upon entry of this Judgment, $500,000 as civil penalties as authorized by Business and Professions Code sections 17206 and 17536. 7. CashCall also shall pay to Plaintiffthe sum of$500,000 as costs ofthe investigation, attorney fees, and other expenses related to the investigation and resolution of this case. These payments shall be made in two equal payments of $250,000, with the first payment due no later than 60 days after entry ofthis Judgment and the second payment due no later than 120 days after entry of this Judgment. These payments shall be designated for the exclusive use of the Office of the Attorney General for the investigation and prosecution of consumer protection matters, and for consumer education and outreach. 8. The sums described in paragraphs 6 and 7 shall be paid by certified checks made payable to the California Attorney General's Office and delivered to Plaintiff at the following address: Department of Justice, Office of the Attorney General, 300 South Spring Street, Suite 1702, Los Angeles, CA 90013, Attn: Deputy Attorney General Benj amin Diehl. 9. The payments required by this Judgment are not dischargeable in banlauptcy. 10. Any duly authorized representative of the California Attorney General shall, upon reasonable notice to CashCall, be permitted to inspect and copy all books, ledgers, accounts, correspondence, melnoranda, recordings, contracts, banking records or other records or documents in the possession or under the control of CashCall, which relate to any of the matters contained in this Judgment. 11. This Judgment fully and finally resolves only those matters specifically set forth in . the allegations of the Complaint filed in this action, for conduct which occurred before entry of this Judgment. 11 COMPLAINT Document hosted at http://www.jdsupra.com/post/documentViewer.aspx?fid=4a8c6131-d1ad-404b-8f89-869c0b1cff0d123456789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 12. Nothing in this Judgment shall 'be construed as relieving CashCall of its obligations to comply, or as prohibiting CashCall from complying, with all applicable local, state and federal laws, regulations, or rules. Nor shall any of the provisions of this Judgment be deemed to be permission to engage in any acts or practices prohibited by any applicable law, regulation, or rule. 13. This Court shall retain jurisdiction over this matter for purposes of enabling any party to this Judgment to apply to the Court at any time for further orders or directions as may be necessary or appropriate for the construction or carrying out of this Judgment, formodificatic.m of any of the injunctive provisions of this Judgment, for enforcement or compliance with this Judgment, and/or for the punishment of any violation of this Judgment. 14. This Judgment shall be binding and effective immediately upon entry by the clerk of LA2008801919 Superior COUlt 2 party no cover.doc 12 COMPLAINT Document hosted at http://www.jdsupra.com/post/documentViewer.aspx?fid=4a8c6131-d1ad-404b-8f89-869c0b1cff0d

Latest Posts

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

"My best business intelligence, in one easy email…"

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Privacy Policy (Updated: October 8, 2015):

hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.